Kratos Defense & Security Solutions (NASDAQ:KTOS) Hits New 52-Week Low - Time to Sell?

Key Points

• Kratos Defense & Security Solutions fell to a new 52-week low of $41.81, trading below its 50-day and 200-day moving averages. Despite the decline, analysts maintain a consensus “Moderate Buy” rating with an average price target of $96.53.
• The company exceeded quarterly expectations, reporting adjusted earnings of $0.21 per share versus a $0.14 consensus estimate and revenue of $458.8 million, up 30.5% year over year.
• Insiders sold approximately $23.8 million of shares over the past 90 days, while institutional investors own 75.92% of the stock. The company’s high valuation—about 247 times earnings—could add pressure despite its strong revenue growth.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Monday. The stock traded as low as $41.81 and last traded at $41.79, with a volume of 3686292 shares. The stock had previously closed at $43.07.

Analyst Ratings Changes

Several equities analysts recently commented on KTOS shares. Citigroup reiterated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, July 28th. Truist Financial dropped their target price on Kratos Defense & Security Solutions from $135.00 to $104.00 and set a "buy" rating for the company in a research report on Thursday, August 13th. Cantor Fitzgerald decreased their price target on Kratos Defense & Security Solutions from $115.00 to $100.00 and set an "overweight" rating for the company in a research note on Tuesday, August 4th. Stifel Nicolaus dropped their price objective on Kratos Defense & Security Solutions from $134.00 to $115.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Finally, Weiss Ratings downgraded Kratos Defense & Security Solutions from a "hold (c)" rating to a "sell (d+)" rating in a research report on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $96.53.

Kratos Defense & Security Solutions Stock Down 2.3%

The business's fifty day moving average price is $51.17 and its two-hundred day moving average price is $57.37. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 and a current ratio of 5.54. The firm has a market capitalization of $7.90 billion, a P/E ratio of 246.64 and a beta of 1.11.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.07. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.The business had revenue of $458.80 million during the quarter, compared to the consensus estimate of $410.36 million. During the same quarter last year, the company earned $0.11 earnings per share. The company's quarterly revenue was up 30.5% on a year-over-year basis. Equities analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.57 earnings per share for the current fiscal year.

Insider Activity at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, CFO Deanna H. Lund sold 7,000 shares of the company's stock in a transaction on Monday, September 21st. The shares were sold at an average price of $48.78, for a total value of $341,460.00. Following the sale, the chief financial officer directly owned 273,511 shares of the company's stock, valued at approximately $13,341,866.58. This represents a 2.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 7,000 shares of the stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $47.13, for a total value of $329,910.00. Following the sale, the insider directly owned 295,120 shares in the company, valued at $13,909,005.60. This represents a 2.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 379,513 shares of company stock valued at $23,799,552 over the last ninety days. Corporate insiders own 1.50% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Clearbridge Investments LLC lifted its stake in Kratos Defense & Security Solutions by 48.5% during the 4th quarter. Clearbridge Investments LLC now owns 1,458,084 shares of the aerospace company's stock valued at $110,683,000 after acquiring an additional 476,049 shares during the period. Bank of New York Mellon Corp raised its holdings in Kratos Defense & Security Solutions by 12.2% in the 1st quarter. Bank of New York Mellon Corp now owns 1,515,997 shares of the aerospace company's stock valued at $106,893,000 after acquiring an additional 164,607 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in Kratos Defense & Security Solutions by 66.0% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,398,525 shares of the aerospace company's stock worth $106,162,000 after purchasing an additional 556,036 shares in the last quarter. Principal Financial Group Inc. lifted its stake in Kratos Defense & Security Solutions by 48.0% in the 1st quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company's stock worth $74,520,000 after purchasing an additional 342,789 shares in the last quarter. Finally, Bamco Inc. NY acquired a new position in shares of Kratos Defense & Security Solutions during the 2nd quarter worth approximately $53,746,000. 75.92% of the stock is owned by institutional investors and hedge funds.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense, and commercial applications. Its offerings support unmanned systems, satellite communications, space operations, missile defense, hypersonic programs, launch systems, and command, control, communications, computers, intelligence, surveillance, and reconnaissance (C5ISR) missions.

The company provides unmanned aerial, ground, and maritime systems, including target drones and other autonomous platforms used for testing, training, and operational missions.

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